How much can you contribute to a 529 plan?

Generally, most states base their aggregate contribution limits on the cost of seven years of postsecondary education. In California, the aggregate contribution limit is above-average at $529,000. Once the 529 plan account balance reaches the aggregate contribution limit, no further contributions may be made.

Are 529 plans tax deductible in California?

Here are the special tax benefits and considerations for using a 529 plan in California. California does not offer any tax deductions for contributing to a 529 plan. Minimum: There is no minimum contribution. Maximum: Accepts contributions until all account balances for the same beneficiary reach $529,000.

How much does a 529 plan cost in California?

The minimum contribution amount for California’s ScholarShare 529 plan is $25 ($15 for payroll deduction). Contributions to California 529 plans are made with after-tax dollars, similar to a Roth IRA. Contributions to California 529 plans are not deductible on federal or California state income tax returns.